Washington Corporation has accumulated E&P of $8,000 at the beginning of 2020. During the year, the corporation incurs a current E&P de Bict of $18,000. The corporation distributes $11,000 on March 31, 2020 to George, its sole shareholder. George has a $9,000 basis for his stock. The treatment of the distribution will be 58.000 dividend and a $3,000 return of capital $3,500 dividend and a 57.500 return of capital $11.000 return of capital $3.500 dividend and a $7.500 capital gain